Terms and Conditions in the hospitality sector

A quiet cornerstone of risk management

Laura Crowe, Associate

In the hospitality sector, the customer’s experience takes centre stage – comfort, convenience and service are paramount to any event. These are all made possible through Terms and Conditions (T&Cs) – T&Cs plays a vital role in shaping how your events are managed, protected, and delivered. T&Cs are not merely legal formalities but rather a critical business tool that every operator in the sector should treat with care – otherwise, poorly drafted T&Cs may lead to legal disputes and financial loss.

Why T&Cs Matter

T&Cs form the contractual framework between a business and its customers – defining liabilities, rights, responsibilities and expectations of both parties. In a sector as fast-paced and varied as hospitality, clarity of these terms is essential.

In a lively and fast-developing city like Manchester, hospitality venues such as hotels, restaurants, bars and sporting stadiums deal with bookings, payments, cancellations, liability and conduct – all of which must be set out clearly to avoid confusion or conflict.

Poorly drafted T&Cs can expose your business to:

• Unclear cancellation and refund policies
• Unexpected liability for accidents or damage to property
• Disputes over booking terms
• Compliance risks under consumer protection law
• Potential loss of new customers
• Damage to reputation

In Costcutter Supermarkets Group Ltd v Vaish and another [2024], the High Court examined the wording of a liability cap clause in a contract between Costcutter and two retailers. The clause was drafted broadly and led to a dispute over its interpretation. The High Court ruled that the clause did not limit the obligation to pay for the goods supplied. Therefore, it is imperative to draft your exclusion and limitation clauses clearly.

In any event, the reputational and financial impact of these issues to your business can be monumental – particularly in a digital age of online reviews and complaints.

Key Legal Considerations

1. Consumer Rights – Under UK law, terms must be transparent, accessible and not unfairly weighted in favour of your business. The key takeaway is that your language must be precise and tailored to the specific risks of the business.
2. Limiting Liability – Most operators include disclaimers for personal injury or property loss, especially with leisure activities. However, you can’t exclude liability for death or personal injury caused by negligence where the Unfair Contract Terms Act 1977 applies.
3. Force Majeure and Disruption – It can be difficult to predict events such as extreme weather, strikes or public health crises. A well-drafted force majeure clause should encompass what would happen in these events and ensure there is protection for your business in such scenarios.
4. Privacy and Data Protection – It is common practice to take customer data through booking systems and loyalty programmes. Your T&Cs should reflect data handling practices and comply with the UK GDPR and other data protection legislation.

Final Thoughts

In a complex and dynamic world of hospitality and leisure – especially across Manchester’s thriving scene of music venues, sports stadiums, hotels and restaurants – T&Cs are the backbone to every event. Robust and well-communicated T&Cs are the foundation of customer trust, clarity and long-term success whilst avoiding costly misunderstandings.

Contact our commercial team of strong, tailored T&Cs.